Nifty 8821/Sensex 28468/ Bank Nifty 20551
29 Advances / 22 Declines/ 0 Unchanged
Indian market extend uptrend; Nifty ends above 8800 mark
Indian benchmarks showcased an amazing performance on Friday and went on to outclass indices around the world by surging over half a percent and settling above the psychological 8,800 (Nifty) and 28,450 (Sensex) levels.
Thursday’s optimism got spilled over into the today’s session helping the frontline indices in extending the winning momentum for second successive session. Sentiments remained sanguine as Reserve Bank of India (RBI) governor Urjit Patel said India is at a ‘good place’ in terms of financial stability and the central bank will manage any sharp volatility in the markets arising out of global developments including concerns over U.S. President Donald Trump's protectionist policies. He also said RBI is looking beyond the headline inflation figures and is focusing on core inflation trends, which excludes more volatile food and fuel prices, to guide RBI's policy moves. Further, Investors’ morale also remained upbeat as Arjun Ram Meghwal, Minister of State for Finance said that the ongoing digital push and encouragement of cashless transactions would boost the country’s gross domestic product (GDP).
He also said that India was on the verge of a transition from a large cash economy to a less cash and digital economy. However, weak global cues coupled with depreciation in rupee value have limited the gains. Indian rupee fell 8 paise to 67.15 against the US currency on Friday on increased dollar demand from importers and banks. Some investors remained nervous with Nomura’s report that the impact of demonetisation is still visible and cash levels in the economy are not expected to be sufficient until March, which may keep trade volumes depressed for the next two months. As per data released by the commerce ministry, growth in exports in January was lower than 5.72% in December. Furthermore, India Ratings and Research (Ind-Ra) does not expect the performance of Indian companies to improve substantially in FY18. Pick-up in capital expenditure by the private sector is at least another two fiscal years away. Rise in commodity prices and uptick in interest rates amid rate hikes globally are two important risks to slow-but-improving demand for FY18.
On the global front, Asian equity markets ended mostly in red on Friday as investors took profits, while the dollar inched up after Thursday's slide and optimism over possible renewed supply cuts by OPEC lifted oil prices. A batch of positive economic data out of Asia this week, driven by improving exports and rising commodity prices, has bolstered shares, although concerns linger that any protectionist threats posed by US President Donald Trump could reverse the recovery. Further, Japanese market fell as the yen gained ground amid the G20 gathering in the German city of Bonn, while Chinese and Hong Kong shares ended lower as investors took profits on resources shares, but losses were checked by strength in Chinese brokerage shares after authorities relaxed some rules on stock index futures trading. Meanwhile, European stocks drifted lower in early trade, as investors trimmed risky positions following a pullback from recent market highs and an erratic press conference from President Donald Trump.
Back home, after gap up start, the local benchmarks soon capitalized on the momentum and touched intraday highs in early trade, but the indices failed to hold onto the highs and receded to intraday lows in late morning trades. Thereafter, the indices traded in a tight range for most part of the session, as most traders remained uncomfortable to open fresh positions
FII Activity (17th Feb 2017)
The FIIs as per Friday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.
In equity segment, the gross buying was of Rs 5085.23 crore against gross selling of Rs 5281.60 crore. Thus, FIIs stood as net sellers of Rs 196.37 crore in equities.
In the debt segment, the gross purchase was of Rs 337.65 crore with gross sales of Rs 314.11 crore. Thus, FIIs stood as net buyers of Rs 23.54 crore in debt.
Now what to expect next??
Nifty Future Levels
Nifty unable to breach its resistance level of 8850 and slipped sharply.
Now what to expect??
Support at 8720 and resistance at 8850.
Three consecutive close + weekly close above 8850 will take it to 8980—9050+++ mark else could touch its support level of 8720.
Fresh selling can be initiated below 8720
Bank Nifty Future Levels
Support at 20200---19900 and resistance at 20650---20900.
Traders can trade in a range with strict stop loss and wait for confirmation.
Today's Top Pick
IDFC
Support at 52.50 and Resistance at 54.00
Break and sustain above 54.00 will take it to 56.50—58.00 and then to 62+ mark, else could touch its support level of 52.50
Looks weak only if close below 52.50
More will update soon!!
